Buy extended car warranty to take care of costly repairs

May 04, 2012, 06.05 AM IST

Prashant Mahesh, ET Bureau

Most car manufacturers offer you a standard warranty for the first two years or 40,000 kms, whichever comes first. However, the dealer will insist you to buy an extended warranty these days as you finalise your car and prepare to sign the cheque.

The extended warranty is offered for the third and fourth years or 80,000 kms. You can also buy an extended warranty for only the third year or 60,000 kms and then opt for the fourth year or 80,000 kms.

This warranty covers mechanical and electrical problems, problems relating to the engine and any other manufacturing defect and labour cost for the repairs. The price you pay for this extended warranty could vary depending on the model of the car and days elapsed since the purchase.